Senior Equity Finance

Senior Equity Finance

Access senior equity finance with Universal Finance Corporation

We understand the importance of financial security in your senior years. Senior equity finance, also known as a reverse mortgage, is an innovative financial solution designed to help homeowners aged 60 and older unlock the value of their home equity without selling their property.


Discover how senior equity finance can help you tick off big financial goals in your golden years with Universal Finance Corporation. 


Why consider senior equity finance


Senior equity finance allows you to convert part of your home equity into cash while continuing to live in your home. Unlike traditional home loans, there are no monthly mortgage repayments. Instead, the loan is repaid when you sell your home, move out permanently or pass away. This unique feature makes senior equity finance an attractive option for retirees seeking to supplement their income, cover medical expenses or finance home improvements without the burden of monthly payments.


The amount you can borrow depends on several factors, including your age, the value of your home and current interest rates. It is perceived by lenders that the older you are, the more valuable your home is, and therefore, the more you are permitted to borrow. The funds are then received as a lump sum, providing flexibility to meet your needs.


How Universal Finance Corporation can help 


Navigating the complexities of senior equity finance can be challenging, but that's where a mortgage broker comes in. At Universal Finance Corporation, our experienced mortgage brokers specialise in senior financial products and are here to guide you every step of the way. 


We will assess your financial situation, discuss your goals and determine if a reverse mortgage is the right option for you. With access to a wide range of lenders and products, Universal Finance Corporation can find the best terms and conditions tailored to your needs.


Secure your financial future with Universal Finance Corporation


Unlock the value of your home and explore the potential of senior equity finance with Universal Finance Corporation. Contact us today to discuss your financing options. 


FAQs

  • What is senior equity finance?

    Senior equity financing, or a senior equity loan, is a reverse mortgage that allows homeowners aged 60 and older to convert part of their home equity into cash. Like a credit card or personal loan, senior equity financing provides access to a large lump sum as needed. While interest is charged on the loan, repayments are deferred until the homeowner sells the property, moves out or passes away.

  • How does senior equity finance differ from other forms of financing?

    Senior equity finance differs from other forms of financing in its eligibility and structure. For instance, this type of financing is only available to borrowers over the age of 60 and features minimal start-up costs. Unlike a standard home loan, there are no annual fees or fixed repayments with a senior equity loan. 


    Depending on your age, there is also a limit to how much you can borrow. Borrowers over 60 can borrow up to 20% of the property’s value, those over 70 can borrow up to 30% and 45% for those over 85. 


  • What are the advantages and disadvantages of senior equity finance?

    Senior equity financing provides a pathway for borrowers over 60 to take on new financial goals, from holidays to real estate, with minimal upfront obligations. Borrowers can defer their monthly repayments, freeing up their financial capacity to live more comfortably with low or no account keeping fees. However, it’s important to keep in mind there is a limit to how much you can borrow based on your age and that these products may have higher interest rates, which can be a financial strain on borrowers. 

  • What are the typical uses of senior equity finance?

    Older Australians seek senior equity finance in various circumstances, such as purchasing a new car, taking a holiday, refinancing existing debt, or supplementing their income to help them live more comfortably. Many also look to this financing to help kickstart business initiatives or take on emerging real estate opportunities. 

  • Who are the typical investors in senior equity finance?

    Typical investors or lenders who accommodate seniors looking for this type of financing include banks, pension funds, insurance companies and private equity firms. Universal Finance can help you compare your options to ensure you apply for the investor that best aligns with your circumstances.
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